If you can remove the popcorn ceiling, it will make the ceilings look cleaner and newer. Since you have children, you need to be careful to not generate dust, to keep them from developing allergies or asthma. https://www.google.com/amp/s/pulse.seattlechildrens.org/the-dangers-of-home-renovation-keep-kids-safe-during-repairs/amp/ Caution: some popcorns ceilings contained asbestos. https://www.google.com/amp/s/www.asbestos.com/blog/2018/07/24/asbestos-popcorn-ceiling-safe/amp/ The walls will have a better finish if you remove the wallpaper, scrub the walls to remove the adhesive (a wet roller mop works wonders) and then spray new texture to cover over where the adhesive was removed. Prime the walls and paint them in white flat paint. Then, using the same shade of white in a semi-gloss finish, put an extra coat of white on the woodwork (baseboards and doors). The screen between the dining room and hallway is non-structural. You can remove it but would have to patch the floor, ceiling and connection at the sidewall. Do everything white. If you don’t like the hallway, you can always find a way to rework it later with doors or cabinets. Sherwin Williams has 50 shades of white. You should be able to find a shade of white that is perfect for your home. They have a lightbox in the store that enables you to see the paint colors under different lighting conditions. Right now, they are having a 30% off sale: https://www.sherwin-williams.com/homeowners/special-offers/digital-media

I think new paint and some different wall decorations would make a big impact. White it a great suggestion, potentially blues and greens. I don't see MCM for your space but it can definitely feel contemporary, clean-lined, and updated. The fireplace is rather clean-lined and doesn't feel like it fights a contemporary vibe at all.

The look of the little table works with the space. A pair of comfortable wood chairs with separate cushions you can change out is all you really need unless you're spending a lot of time sitting in them -- on the computer or visiting with a friend ... then you might want chairs with more upholstery and more cushion comfort. If you're choosing the plain wood chairs, make sure the wood back is made of the wider flat boards that are curved ( rather than vertical round dowels ). Have had both and the flat curved boards will be a lot more comfortable. I like the high back for extended sitting and these kinds of seats are comfortable and easily covered when need to be changed. You need to scroll over the page left of the wording to get the chairs to appear with this link: https://www.amishoriginals.com/shop/shaker-ladder-11320/ Or you might consider a pair of saddle stools for the table and bar. Do sit in whatever you are considering buying. https://www.google.com/search?q=wide+scooped+wood+saddle+stools&client=firefox-b-1-d&source=lnms&tbm=isch&sa=X&ved=2ahUKEwiC1Jj276btAhURqlkKHfRlD9kQ_AUoAnoECAYQBA&biw=1366&bih=654 Or you might consider a pair of saddle stools for the table and/or bar. Do sit in whatever you are considering buying. https://www.google.com/search?q=wide+scooped+wood+saddle+stools&client=firefox-b-1-d&source=lnms&tbm=isch&sa=X&ved=2ahUKEwiC1Jj276btAhURqlkKHfRlD9kQ_AUoAnoECAYQBA&biw=1366&bih=654 Like your art and the splash of bright colors. A large framed vertical poster on the wall (no wider than your bar/countertop) would work left of the tv across from the bar/countertop if you have a special interest you want represented in the room -- some place or pastime or hobby or team you support. Like the idea of the "window": https://www.zazzle.com/fake_window_poster-228195308274074493?rf=238840279726397180&tc=EAIaIQobChMI6uzEn_mm7QIVgrKGCh0u0gGnEAQYBSABEgJ2aPD_BwE&utm_source=google&utm_medium=cpc&utm_campaign=us_shopping&utm_term=z228195308274074493&ca_chid=2001810&ca_source=gaw&ca_ace=&ca_nw=g&ca_dev=c&ca_pl=&ca_pos=&ca_cid=303811431291&ca_agid=59506835414&ca_caid=1600127652&ca_adid=303811431291&ca_kwt=&ca_mt=&ca_fid=&ca_tid=aud-540000688047:pla-940848662132&ca_lp=9011011&ca_li=&ca_devm=&ca_plt=&gclsrc=aw.ds&gclid=EAIaIQobChMI6uzEn_mm7QIVgrKGCh0u0gGnEAQYBSABEgJ2aPD_BwE

​@maureen: love these inspo photos thank you, especially the 3rd one to enhance the FP wall! @patricia Colwell: I dont plan on having a TV in this room. Unfortunately, I xant afford to get rid of the FP at the moment @happyleg: i want to keep the room white for now! Simply looking for furniture arrangement and decor ideas! @celeri: love the idea of making FP the focal point! @beverlyFLA: love the idea of having bookshelves on either side of FP @seattleMCm: organic modern would definitely be it for me! Loving all the inspo pictures you shared! @pinkmountain: no TV in the room! I want it to be a chic and cozy room to welcome friends and have long conversations after a nice dinner!